Issues
in the Shwe Natural Gas Project:
Entrenchment
of the Military Regime
Military
regimes the world over rely on their wealth of natural resources
to finance military expenditures and subsequently sustain their
hold on power. Be it tropical forests, gold, copper and diamonds,
or oil and gas, without production and extraction deals with
multinational corporations, most
military regimes could not stay in power.
The
demand for Burma's natural gas, and its strategic position to
trade markets in China and Southeast Asia, has encouraged
neighbouring countries, such as India,
Bangladesh
and Thailand, to recognise and make deals with the Burmese
military.
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Possibly
more important is Burma's geopolitical position between India
and China, with warming yet distrustful relations between the two
Asian giants. Burma has for many years been considered under
strong economic influence of China, but India's recent policy
shift to engagement with the regime has put the Burmese junta
(State Peace and Development Council, or SPDC) into a highly
beneficial bargaining position between the two foes. The Burmese
generals do not appear shy in playing one against the other. Since
August 2004, the regime has sold two concessions for oil and gas
exploration in Arakan State alone to Chinese companies (see
news). An additional plan to build a pipeline to transport oil
from the Sittwe port in the Indian Ocean to Yunnan Provice remains
high on the Chinese agenda. [a] Within
only weeks of the October 2004 purge of former Prime Minister
General Khin Nyunt and his followers (see
news) Gen Than Shwe, head of the SPDC, and Soe Win, Burma's
new Prime Minister, each visited India and China respectively.
They traveled to provide assurances of stability and further
economic agreements between their nations.
As
part of the negotiations to produce and import natural gas, the
Burmese regime is demanding political concessions from these
trading partners, such as the expulsion of Burmese refugees and
crackdowns on the pro-democracy opposition.
At
the current price of Shwe
gas asked by the military regime from India, US$4.50/mmbtu
(million British Thermal Units) , the total value of known gas
(4.2-5.8 trillion cubic feet (tcf) currently stands at US$ 19-26
billion. For the 14-20 tcf of expected recoverable gas reserves in
the A-1 block, the total value of gas at the same price level
jumps to US$ 64-92 billion. Although all details regarding the
contractual arrangement have been shrouded in secrecy, it is
believed that it will become the junta's single largest source
of foreign revenue.
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Considerable
signing bonuses and all local profits from any Exploration &
Production/E&P projects in Burma go directly to the Myanmar
Oil and Gas Enterprise/MOGE, which is 100% owned by the
Burmese military. The regime's military expenditures account for
over 40% of the country's national budget. [b] UNDP's 2003
statistics state that Burma's health and education spending is
0.4% and 0.5% of GDP respectively, each of which rank the lowest
of the world. []
These gas profits will only strengthen the
position of the ruling military and cause further sufferings and
hardship for the common people of Burma. The peoples of Burma need
your help in preventing this environmental, human, and political
catastrophe from going forth.
We, the SHWE Gas Movement, demand that this
project be postponed until above four issues receive adequate
airing. Until the people of Burma have a say in the dealings of
their government, it is up to you to help stop this project.
Learn More
The SHWE Gas Movement maintains that stopping this gas project is integral to the fight for democracy in Burma. Following are the four main issues driving our campaign to demand a halt to the ongoing plans to exploit this Shwe gas:
Visit our Take Action section to learn what you can do to help! |
Sources
[a]
http://www.gasandoil.com/goc/news/nts43358.htm
[b] Andrew
Selth, Burma's Armed Forces: Power Without Glory
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